Digital Transformation Market Outlook
The global digital transformation market size was valued at USD 510.14 Billion in 2022 and is likely reach to USD 3.33 Trillion by 2031, expanding at a CAGR of 23.2% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing use of mobile devices and applications across business processes and units in several industries.
Digital transformation refers to the integration of digital technology into all aspects of an organization, radically altering how it operates and provides value to consumers. It is also involved a culture shift that necessitates firms challenging the existing quo, experimenting, and learning to accept the adoption of new technology for effective business operations.
Organizations increase their operational performance, customer experience, brand reputation, and customer retention ratios by implementing digital transformation.
Furthermore, a digitally transformed business can effectively adapt to changing technological landscape and address sudden shifts in an industry. Several industries including energy and electricity, manufacturing, healthcare, and education are increasingly investing in automation solutions to improve process efficiency quickly and permanently.
As per studies associated with the COVID-19 pandemic research, digitally transformed firms have far efficiency in their business operations during the pandemic. Organizations are rapidly realizing the benefits of digital transformation during the emergency lockdown, particularly in the context of remote work, impacted by the pandemic.
Using the digital platforms, a company extends its capacity to enable its workers to learn, interact, and carry out organizational functions efficiently despite staying remotely across several locations.
Market Trends, Drivers, Restraints, and Opportunities
- Changing from traditional to digital business models allows more advanced technological products and services, which is estimated to drive market growth.
- Rising rate of digital transformation due to the increasing adoption of wireless communication and other advanced technologies across a variety of industries. This is expected to boost the market.
- High cost of implementing digital transformation as well as a lack of funding allocation and effective preparation for embracing digitization. These are key challenges that can negatively impact the market growth.
- Data security and privacy threats are the key factors restraining the growth of the market.
- Changing preference towards the online payment system and increasing penetration of the Internet are expected to be offering great opportunity for market growth during the forecast period.
Scope of Digital Transformation Market Report
The report on the global digital transformation market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Digital Transformation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Enterprise Sizes (Small & Medium Enterprises and Large Enterprises), Deployments (On-premise and Hosted), Types (Service [Implementation & Integration and Professional Services] and Solution [Social Media, Mobility, Analytics, Cloud Computing, and Others]), and End-users (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Hewlett Packard Enterprise Company; International Business Machines Corp.; Microsoft Corp.; Kellton Tech Solutions Ltd.; Google, Inc.; Accenture plc; Apple, Inc.; ADOBE, Inc.; CA Technologies (Broadcom, Inc.); and Dell Technologies Inc.
Digital Transformation Market Segment Insights
Large enterprises segment is expected to grow at a rapid pace
Based on enterprises, the digital transformation market is bifurcated into small & medium enterprises (SMEs) and large enterprises. The large enterprises segment is expected to grow at a rapid pace during the forecast period due to cost efficiencies, the comfort of system integration and implementation, and data flexibility of large business operations.
Moreover, wide adoption of a comprehensive digital strategy across the large data process in an attempt to pursue business operations in effective manner.
However, the small & large enterprises segment is anticipated to hold a key share of the market in the coming years. The segment growth is attributed to greater emphasis on cloud computing and lower mobile device cost, which are making SMEs easier to streamline their operations and develop organically.
On-premise segment is projected to expand at a considerable CAGR
On the basis of deployments, the market is segregated into hosted and on-premise. The on-premise segment is projected to expand at a considerable CAGR during the forecast period due to the ease of customizability offered during implementation.
Therefore, on-premise implementation enables businesses to create a bespoke digital transformation network that is tailored to their specific requirements.
On the other hand, the hosted segment is anticipated to account for a major market share during the forecast period on account of significant developments in information sharing technology and the growing use of mobile devices.
Solution segment to develop at a fast pace
In terms of types, the digital transformation market is bifurcated into service and solution. The service segment is further divided into implementation & integration and professional services while the solution segment is sub-classified as social media, mobility, analytics, cloud computing, and others.
The solution segment is anticipated to develop at a fast pace in the coming years owing to wide implementation of the fast-changing technological landscape, which pushes businesses to upgrade their systems on a regular basis in order to stay competitive.
During the projected period, the service segment is expected to grow at a fast rate owing to wide use of professional service and implementation & integration among several companies.
Adoption of digital transformation solutions necessitates the provision of services such as training and support, which propels the segment forward. Moreover, the growing rate of digitalization in a variety of industries is boosting demand for executive training programs to help current staff adapt to the changing technology world.
Healthcare segment to register a robust CAGR
Based on end-users, the market is segregated into BFSI, government, healthcare, IT & telecom, manufacturing, retail, and others. The healthcare segment is projected to register a robust CAGR during the forecast period owing to growing demand for electronic data across all operational channels and patient outreach in the healthcare industry.
As a result, the industry is witnessing a rapid adoption of digital transformation to ensure smooth handling of the growing number of patient data and other scalable business models in the sector.
Digital Transformation Market Regional Outlook
Asia Pacific is anticipated to constitute a key market share
In terms of regions, the digital transformation market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of the Asia Pacific is expected to constitute a key share of the market during the projected period due to the increasing number of the service sector and expanding SMEs in the region.
However, the market of North America is anticipated to expand at a rapid pace during the forecast period owing to the wide usage of a variety of online payment methods and the high penetration of internet services in the region.
- Small & Medium Enterprises
- Large Enterprises
- Implementation & Integration
- Professional Services
- Social Media
- Cloud Computing
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global digital transformation market are Hewlett Packard Enterprise Company; International Business Machines Corp.; Microsoft Corp.; Kellton Tech Solutions Ltd.; Google, Inc.; Accenture plc; Apple, Inc.; ADOBE, Inc.; CA Technologies (Broadcom, Inc.); and Dell Technologies Inc.
To improve product and service portfolios, market players are continuously developing new products and adopting diverse business expansion strategies to gain a competitive edge. Companies increasingly focus on mergers acquisitions and strategic partnerships to strengthen their market position.
For instance, NTT Corp. and Microsoft Corp. made a multi-year strategic agreement in December 2019 by focusing on offering dependable and secure solutions to help corporate clients to accelerate their digital transformation activities.